Focus on Funds: Gold Tanks

Jack Otter and Brendan Conway on why the price of gold has been falling, and what triggered the most recent selloff.

This transcript has been automatically generated and may not be 100% accurate.

I ... I'm Jack Otter Editor Barron's online on your Brendan Conway the altar of our focus on Funds plot ... of Brendan you've been reading alot about gold recently was the news the week ... the news of the week is this is an awfully tough week for gold investors ... the Big affair was yesterday ... the Federal Reserve's are ... meeting minutes for the last meeting policy committee in January ... basically showed that the Fed is concerned about ending its asset buying programs ... keep in mind ... this is the thing or what one of the several things that can ... help drive the price of gold all this worry that the central banks ... are going to let their euro currency management in their asset buying program Spinetta control ... it's going to be based currencies and in gold will be one of the only safe havens ... that trade it really took a hit this week ... as it signals that I'm ... you know you might start curtailing those asset buying programs ... I'm not active at all this on the back I you in December as well as your fellow bloggers SAN Moody ... both when a little bearish on gold ... and in my book worth it not worth the time mostly recommended indexing the one train I said was ... sell gold by timber through Plum Creek and I ... to make myself feel that I looked at the chart yesterday and there been a good move ... so the point is it's not just a fad I mean there's been a broader movement in recent months for people and pulling away from goal what's behind ... this that's right yet ... I was behind it is investors ... a paved the DOJ's SS let's face it people people chase things are working ... and the stock market has been rising ... and that there's a feeling among many folks in the market ... that we are seeing a turn away from this financial crisis era and that we were finally returning to something of a normal period which which would be very bad news for gold because ... let's face it you know as warm Buffett pointed out ... gold doesn't have a dividend goal doesn't have earnings ... dishes there's no logical way to valuable ... except ... through ... the air ... and inflation and the cut what worries about bad things happening examines the chair for ... that's ... I've that said Bisbee is a few people have sold gold it's still in its own marvelous ten year bull run ... and are still bulls out there was the bull case to stick with gold ... the bull case is is that ... what's going on in central banks around the world right now is truly unprecedented ... they will be very difficult to in these asset purchasing programs ... other forms of so-called quantitative easing ... in a I'm clean manner ... I'm that this is going very bid for currencies ... is going to be very bad for markets ... then again one of the places read can store your value would be gold or funds that own ... and so what he think he recommended people keep some portion of their portfolio in gold ... you know Jack I'd I could see I could see a small proportion of that but frankly ... not enough to share Seaview under the deal the nightmare scenarios ... that gold's most ardent proponents condition ... he can prove that an unfair that The ... and liquor